Public trading strategy
Weight-loss drugs are crushing it and big pharma is on a buying spree — jump on
Thesis
Eli Lilly's positive trial results prove that the hype around new weight-loss drugs is far from over, breathing fresh life into the healthcare sector. At the exact same time, major pharmaceutical companies like GSK are so eager to get in on the action that they are willing to pay billions to acquire smaller biotech firms. This creates a situation where large drug makers are climbing on good news, while smaller research companies could see massive windfalls if they become the next buyout target.
Strategy approach
Build a rule-based strategy that enters long LLY, NUVL, or XBI on the daily timeframe when RSI(14) is between 50 and 70, using a 10-day ATR trailing stop and a 21-day max hold.